Saturday, June 12, 2010

For-profit colleges reap big benefit from stimulus

www.ajc.com Reports the following:

"Massage and beauty schools, online universities and other for-profit colleges in Georgia and across the nation are cashing in on federal stimulus spending, collecting $2.2 billion in tuition grants for low-income students, public records show.

That represents nearly a quarter of the stimulus money spent on these grants to date.

The taxpayer-funded grants are flowing to profit-making schools as the government is seeking to revise how those schools qualify for federal aid, partly because of concerns over how some saddle their students with substantial debt. The effort follows a federal report that cited abuses in the recruiting practices of some of the schools. "


Stimulus spending

The American Recovery and Reinvestment Act includes $17.1 billion in funding for Pell grants for low-income students. About $9.8 billion has been distributed so far. Here are the top five recipients of that taxpayer money.

1. University of Phoenix, $484.2 million

2. City University of New York Inc., $246.5 million

3. University of Puerto Rico, $98.3 million

4. Inter American University of Puerto Rico, $89.2 million

5. State University of New York, $88.2 million


To View full article please go to: www.ajc.com/news/for-profit-colleges-reap-541761.html

My Thoughts: The effort follows a federal report that cited abuses in the recruiting practices of some of the schools.- Ah yes the unethical tactics used by recruiters. They will lie just to have you sign on that dotted line. Do my eyes deceive me? Is that University of Phoenix at number one? Why am I not surprised?

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